04-101868MASTER L- __dD USE APPLICATION
44k, RECEIVED BY DEPARTMENT OF COMMUNITY DEVELOPMENT SERVICES
mahm ^MARAP tkllTi nr_�;�; nc� +rtit ne�aaTt���IT 33530 First Way South
CITY OF PO Box 9718
Federal Way MAY s Federal Way WA 9863 -9718
253- 661 -4000; Fax 253 - 6661 -4129
www cityof ederalway rnm
APPLICATION NO(S) Q N - 1(71 Y&9" A P Date S • 13 'o V
Project Name
Property Address /Location;
Parcel Number(s)
Project Description
Type of Permit Required
_ Annexation
_ Binding Site Plan
_ Boundary Line Adjustment
_ Comp Plan /Rezone
_ Land Surface Modification
_ Lot Line Elimination
_ Preapplication Conference
_ Process I (Director's Approval)
_ Process II (Site Plan Review)
_ Process III (Project Approval)
_ Process IV (Hearing Examiner's Decision)
_ Process V (Quasi - Judicial Rezone)
Process VI
_ SEPA w/Project
_ SEPA Only
_ Shoreline: Variance /Conditional Use
_ Short Subdivision
_ Subdivision
Variance: Commercial/Residential
Required Information
Designation
Comprehensive Plan Designation
Value of Existing Improvements
Value of Proposed Improvements
Uniform Building Code (UBC):
Occupancy Type
Construction Type
Applicant
Name:
Address:
City/State:
Zip:
Phone:
Fax:
Email:
Signature:
Agent (if different than Applicant)
Name:
Address:
City /State:
Zip:
Phone:
Fax:
Email:
Signature:
Owner
Name:
Address:
City /State:
Zip:
Phone:
Fax:
Email:
Signature:
� 0 - 6057
Bulletin 4003 — March 3, 2003 Page I of I k: \Handouts — Revised \Master Land Use Application
CITY OF J'Ar.�
00Y" y 33530 1 ST WAY SOUTH
April 21, 2000
(253) 661 -4000
FEDERAL WAY, WA 98003 -6210
i c
Kumy Kim
32316 — 7"' Avenue SW C0RRESPkV!ic`JACE E
F ederal Way WA 98023
Dear Mr. Kim:
RE: Adult Entertainment, Activity, Retail and Uses - Amortization Period
Young's Pipe & Tobacco, 29500 Pacific Highway South, Suite D
This letter is a reminder that on August 3, 1999, the Federal Way City Council passed Ordinance 99 -347
related to Adult Uses. A copy of the Use Zone Chart is attached for your review. The ordinance requires
that any nonconforming adult entertainment, activity, retail or use located within the City limits on the
effective date of this code (August 12, 1999), be temvnated within one (1) year (August 13, 2000); see
attached copy of Federal.Way City Code §22- 338.2.
The termination date may be extended upon the approval of an application filed with the City's
Development Director requesting an extension to such one (1) year amortization period. The Director
will then issue a decision on whether or not to approve any extension period. The grant of such .
extension shall be based upon the applicant clearly demonstrating extreme economic hardship based
upon an irreversible financial investment or commitment made prior to February 1, 1999, which
precludes reasonable alternative uses of the subject property.
To date, the City has not received a request from you to extend the amortization period beyond the
August 13, 2000, termination date. Unless the City receives a request, by May 30, 2000; to extend the
amortization deadline from the owners of adult uses businesses, such uses must relocate to an area
zoned BC, Community Business (a copy of the Citys zoning map identifying Community Business zoned
land in the color red is enclosed). Please remember that adult uses must be separated by 1,000 feet
from other incompatible uses identified on the enclosed use zone chart. It should be noted that the City
must grant approval to extend the amortization period for any existing nonconforming adult business to
remain in its existing location beyond August 13, 2000.
City staff are available to assist you with any questions you might have. If I can be of assistance, please
contact me at (253) 661 -4109.
Sincerely,
Step en Ilfton, Al
Director of Community Development Services
Fhc: Land use Chart - Federal Way city Code 122 -765
Federal Way Zoning Map
Lord Linden cilyAll«ney
David Wrode0. 30816 Pacific Highway South, Federal Way, WA 96603
LAADl1L7l1SWoungs Pipe E Tobacco -April 21, 2000 Letter.doc
September 6, 2000
Tony Lee, Manager
Young's Pipe and Tobacco
29500 Pacific Highway South, Suite D
Federal Way, WA 98003
RE: Adult Entertainment, Activity, Retail and Uses - Amortization Period
Young's Pipe & Tobacco, 29500 Pacific Highway South, Suite D
Dear Mr. Kim,
This letter constitutes the City's decision on your request to extend the Adult Uses amortization
period beyond the August 13, 2000 termination date. Upon review of your request, the City
hereby grants a six -month extension to Young's Pipe and Tobacco to continue operating in its
existing location until August 13, 2002 for subject business. The following describes the specific
requirements of Ordinance 99 -347, documentation provided by you and reviewed by the City as
part of the decision making process, and the rationale which serves as the basis for the
decision.
Ordinance 99-347
On August 3, 1999, the Federal Way City Council passed Ordinance 99 -347 related to Adult
Uses. The ordinance requires that any nonconforming adult entertainment activity, retail or use
located within the City limits on the effective date of this code (August 12, 1999), be terminated
within one (1) year (August 13, 2000); see attached copy of Federal Way City Code §22- 338.2.
NOTE: It is difficult to determine whether Young's Pipe and Tobacco business operation
satisfies the definition of adult use /entertainment set forth in Federal Way City Code, Section
22 -1, by reviewing materials submitted. See decision below for further discussion on this matter
Request For Extension
The termination date may be extended upon the approval of an application filed with the City's
Development Director requesting an extension to such one (1) year amortization period. The
grant of such extension shall be based upon the applicant clearly demonstrating extreme
economic hardship based upon an irreversible financial investment or commitment made prior
to February 1, 1999, which precludes reasonable alternative uses of the subject property.
The following information was submitted along with two requests to extend the amortization
period:
1. April 30, 2000 letter from Tony Lee, Manager of subject business, asking the City to
determine if the existing subject business is an adult use, and asking to extend the one -
year amortization period.
2. August 29, 2000 letter from Tony Lee, Manager of subject business, asking the City to
verify whether subject business is a "non -adult or and adult shop ". Mr. Lee also
requests an extension to the one -year amortization period in order to liquidate most of
the business's adult related products to meet the City ordinance. Mr. Lee states that
Doc. I.D. 27314
they "will go ahead and remove or liquidate most of the adult products within one year of
amortization period" after they get a decision from the City.
3. Current Lease - Entered into between David J. Rhodes, DBA B. Douglas Co. (landlord),
and Young H., Kum Y, and He Kim, DBA Young's Pipe and Tobacco, Inc. (Tenants).
Current lease expires November 1, 2002. Monthly rent equals $4,248.95/mo or
$50,987.40 /year.
4. Copies of Income Statements for the last five years.
1995 - $124,274 Gross Income, Net Profit $48,342
1996 - $171,332 Gross Income, Net Profit $71,076
1997 - $286,001 Gross Income, Net Profit $47,513
1998 - $264,381 Gross Income, Net Profit $21,599
1999 - $440,480 Gross Income, Net Profit $86,555
5. Copies of canceled monthly rent checks.
6. 8Y2 " X 11" floor plan. Area designated as "adult product space" is approximately 1/3 the
size of the area designated as 'non -adult related space ".
7. Inventory price list by department.
Decision
The granting of an extension shall be based upon the applicant clearly demonstrating extreme
economic hardship based upon an irreversible financial investment or commitment made prior
to February 1, 1999, which precludes reasonable alternative uses of the subject property. One
of the purposes of the administrative extension is to allow a business owner an opportunity to
amortize the value of investments in the subject property. No records of a financial investment
made prior to February 1, 1999, other than monthly rental requirements listed within the lease,
were provided.
In the April 30, 2000 letter. Mr. Lee asks that the City determine if the existing subject business
is an adult use, and asks the City to extend the one -year amortization period. In an August 29,
2000 letter. Mr. Lee asks that the City verify whether subject business is a "non -adult or and
adult shop ". Mr. Lee also requests an extension to the one -year amortization period in order to
liquidate most of the business's adult related products to meet the City ordinance. Mr. Lee
states that they "will go ahead and remove or liquidate most of the adult products within one
year of amortization period" after they get a decision from the City. NOTE: Neither letter
requests a specific length of time related to extending the amortization period.
If the City were to not grant an extension to the amortization period as requested, you would be
required to terminate the use immediately as required by Ordinance 99 -347. Young's Pipe and
Tobacco, Inc. landlord has an obligation to mitigate damages by actively seeking a new tenant
for the premises. Based on the review of submitted material, it is questionable whether there
has been a clear demonstration that an extreme economic hardship would exist (based upon an
irreversible financial investment or commitment) if the City did not grant the requested
extension, or that Kum Y Kim or you have demonstrated there is no reasonable alternative use
of the subject tenant space. Particularly noticeable when one considers that Young's Pipe and
Tobacco is located in a multi- tenant complex where other viable non -adult use related
businesses are operating. In fact, the existence of adjacent, non -adult related uses
demonstrates that alternatives for leasing subject space do exist.
Additionally, it is important to note that Young's Pipe and Tobacco, Inc. knowingly signed a
lease containing a provision (Item 6) which states "Tenant shall use the premises for retail
variety and hereby agrees that is has determined to its satisfaction that the premises can be
Doc. I.D. 27314
used for those purposes. Tenant waives any right to terminate this lease in the event the
premises cannot be use for such purposes during the lease term. The premises may not be
used for any other purpose without Landlord's consent." It would be difficult for Young's Pipe
and Tobacco, Inc. to claim that its lease constitutes an extreme economic hardship due to its
inability to terminate its lease because its proposed adult retail use is unlawful, as self- imposed
hardships are not a basis for relief from zoning requirements (Federal Way City Code §22-
198(4).
Nevertheless, notwithstanding the foregoing, based on the remaining 2 -year lease term, which
appears to have resulted from an "arms" length transaction, and upon other facts presented by
your concerning your desire to use the extension period to liquidate the amount of adult oriented
products in order to not be deemed an adult use, I am approving a 6 -month extension to
February 13, 2001. Prior to the conclusion of this date, Young's Pipe and Tobacco, Inc., must
clearly demonstrate that it complies with the Code at the current location. To do so, you must
demonstrate that your business does not provide as its substantial stock in trade any adult
oriented merchandise. If you can do so, the use will be allowed to remain in its existing location.
If not, then your business will be required to relocate to an area that permits adult uses. In order
for the City to make a thorough decision, the following shall be submitted to the City by January
13, 2000.
1) Summarize Inventory totals for the months of August, September, October, November
and December of 2000. Specifically, provide the total number of all non -adult and adult
oriented materials inventoried for each one -month period.
2) Total dollar amounts related to adult and non -adult materials sold for each one -month
period.
3) Total number of adult and non -adult materials items sold for each one -month period.
Upon receipt of the materials submitted, the City will issue a determination as to whether
Young's Pipe and Tobacco, Inc. meets the definition of adult use or retail. If you have any
questions, please contact Kathy McClung, Interim Director of Community Development Services
at (253) 661 -4107.
Sincerely,
Stephen Clifton, AICP
Director of Community Development Services
Enc: FWCC Section 22 -338.2
FWCC Section 22 -22- 198(4)
C: David Moseley, City Manager
Bob Sterbank, Interim City Attorney
Kathy McClung, Deputy Director of Community Development Services
Kum Y Kim„ 32316 — 7"' Avenue SW, Federal Way, WA 98023
David Rhodes, 30816 Pacific Highway South, Federal Way, WA 98003
K:IADULTUSES1Young's Pipe and Tabacco - Response to Request to Extend Amortization Period
Doc. I.D. 27314